The global banking system is experiencing a profound transformation. Traditional banking infrastructure is rapidly losing ground to the ubiquity of mobile phones and the rise of agent-based and telco-led financial services. The numbers reveal a structural shift that is bypassing banks—especially in rural and low-income markets—at an unprecedented scale.

ATMs vs. Mobile Phones: The Scale of Displacement

There are just 2.95 million ATMs worldwide, compared to 8.3 billion active mobile phones (BankMyCell, 2025). This means that for every ATM, there are about 2,820 cellphones. In rural areas, which account for 43% of the world’s population (World Bank, SP.RUR.TOTL.ZS), the ATM is increasingly irrelevant. The future of financial transactions is mobile, and the numbers confirm it.

Deposit Outflows and Digital Growth

In 2024, U.S. banks recorded their first deposit decline since 1995—a 4.8% drop (FinTech Weekly). Meanwhile, digital-first banks such as N26 reported revenue growth of 40% in the same period. Over 55% of U.S. customers now primarily manage their finances through mobile apps, and the global digital banking market is projected to reach $22.3 trillion by 2026 (EMB Global). Challenger banks and fintechs are not merely supplementing the market—they are capturing its core.

Shrinking Physical Presence

Major banks are closing branches at an unprecedented rate. NatWest closed 53 branches in 2025 alone, while HSBC’s digital transition has been described as “sluggish” (Finextra). The contraction of physical banking infrastructure is a global phenomenon.

Fintechs and Challenger Banks: Rapid Customer Acquisition

Trust Bank in Singapore became the country’s fourth-largest retail bank in just over a year, surpassing one million customers (The Straits Times). JPMorgan Chase’s UK digital platform reached 1.6 million customers in 2023 (Reuters). The revenue gap is widening: while legacy banks struggle for marginal deposit growth, digital-first banks are expanding at rates of 40% or more.

Micro-Transactions: The Global Bypass

The migration of micro-transactions away from traditional banks is most visible in rural and low-income markets, where agent networks and mobile money services—often run by telcos—have become the default. The Dominican Republic provides a concrete example of the scale of this bypass, even in the absence of a local fintech ecosystem.

• Population (mid-2024 est.): 11.5 million
• Rural share (official data): ≈ 85%
• Rural population using only feature phones (field surveys): ≈ 70%
• Active mobile phones (all types, global): 8.3 billion (BankMyCell, 2025)
• Feature (“button”) phones still in use (global): ≈ 1.1 billion (13%)
• Average fee for a sub-US $5 bank transfer in LICs: US $0.50–0.90 (10–18%) (MoneyTransfers)

Assuming each rural adult in the Dominican Republic makes one US $5 peer-to-peer transfer per day using a mobile wallet or agent network (with no bank involvement), and that a traditional domestic bank transfer of the same size would cost approximately US $0.60 in fees (mid-point of the 50 DOP Caribe-Express tariff):

• Rural users: 11.5 million × 85% ≈ 9.8 million
• Annual transfer flow: 9.8 million × $5 × 365 ≈ US $17.8 billion
• Forgone fee income: 9.8 million × $0.60 × 365 ≈ US $2.1 billion per year

Result: In this scenario, banks in the Dominican Republic forfeit approximately US $2 billion in fee revenue annually on micro-payments alone, while US $17–18 billion in transaction volume bypasses the formal banking rails. The same pattern is observable in many other countries with high rural populations and widespread mobile phone use.

Global Perspective: The Scale of Bypassed Banking

Extrapolating this model globally:

• Global rural population: ≈ 3.4 billion (World Bank)
• Assume 30% of those adults (≈ 1.0 billion) have access to a feature phone and mobile wallet/agent.
• Each makes one US $5 transfer per day.
• Average legacy-bank fee if using the formal system: 10% (US $0.50).
• Daily volume bypassing banks: 1.02 billion × $5 ≈ US $5.1 billion
• Annual volume bypassing banks: US $1.86 trillion
• Annual fee revenue forfeited: 10% × 1.86 trillion ≈ US $186 billion

Even if only one in four rural residents transacts daily and the average fee is halved, the annual loss remains between US $40–90 billion.

Structural Barriers to Reversal

• Physical reach: ATMs number just 2.95 million worldwide—a 2,800:1 ratio versus mobile phones. Branch networks are shrinking by 3–7% annually in most low-income countries.
• Cost structure: An on-us rural ATM transaction costs a bank approximately US $0.25–0.35 to service. Agent/mobile-money networks operate at less than US $0.08 per transaction, often subsidized by telcos.
• Device reality: Over a billion users have no smartphone; USSD/SMS wallets are their only digital finance channel. Banks rarely support USSD directly, while agent networks and telcos do.
• Behavioural lock-in: Once users trust a mobile wallet or agent for daily micro-transactions, larger remittances and savings migrate there as well, accelerating deposit leakage (already −4.8% in the U.S. legacy sector in 2024).

Lessons from M-Pesa: Missed Opportunities and Global Impact

A similar model has already demonstrated its transformative power elsewhere. In Kenya, M-Pesa—a mobile money service launched by Safaricom and Vodafone—now processes over $300 billion in transactions annually, with 51 million users and 59% of Kenya’s GDP flowing through its rails (Forbes, 2024). M-Pesa’s success was not the result of a bank-led initiative, but of a telco’s willingness to serve the unbanked and underbanked with simple, accessible technology.

Notably, Visa did not acquire M-Pesa. Instead, in 2022, M-Pesa and Visa partnered to launch the M-Pesa GlobalPay virtual Visa card, enabling M-Pesa users to make international online payments (Safaricom). The ownership of M-Pesa remains with Safaricom and Vodacom, who acquired the brand from Vodafone in 2020.

In 2013, a project with similar ambitions was proposed to banks in the Dominican Republic, aiming to bring agent-based, mobile-enabled financial services to rural populations. The proposal was dismissed as “excess service.” In contrast, M-Pesa’s model has since generated billions in revenue and transformed financial inclusion in multiple countries.

Conclusion: A Structural Shift, Not a Passing Trend

In countries with high rural populations and limited banking infrastructure, billions in annual fee income are bypassed on micro-transactions, with trillions in transaction volume moving outside the formal banking system. Globally, over $186 billion in micro-transaction revenue is now captured by telco-led or agent-based rails—roughly double the combined 2024 profits of the five largest U.S. banks.

The data is unambiguous: the migration of micro-transactions to mobile and agent networks is not a marginal trend, but a fundamental reordering of the financial landscape. The infrastructure and business models of traditional banks are being outpaced by the scale, efficiency, and reach of mobile-first and agent-based solutions—especially in rural and low-income markets.

Sources:

• BankMyCell: How Many Phones Are in the World? (2025)
• World Bank Rural Population Data (SP.RUR.TOTL.ZS)
• FinTech Weekly
• EMB Global: Digital Banking Market Size
• MoneyTransfers: Caribe Express Fees
• The Straits Times: Trust Bank Hits 1 Million Customers
• Reuters: JPMorgan Chase UK Digital Bank
• Finextra: HSBC Branch Closures
• Forbes: M-Pesa’s Global Impact
• Safaricom: M-Pesa GlobalPay Virtual Visa Card

For further context on the 2013 project offered to Dominican banks, see:

• Project details in Spanish
• Project details in Russian

The numbers, trends, and structural realities point to a new era in financial services—one where mobile and agent-based platforms are not just competing with, but overtaking, traditional banking infrastructure, especially in rural and low-income markets.

Brief
The U.S. merchant account services market is a battlefield. New tech disruptors are storming the field, legacy giants are digging in, and a handful of former titans are losing ground fast. This is not just a story of numbers, but of people, technology, and the relentless drive for relevance. Here’s who’s winning, who’s losing, and why it matters for your next career move, your sales strategy, or your business’s bottom line.

The SMB Payments Market at a Glance

Sources: TSG Payments, Business News Today, company filings, industry interviews

The SMB Payments Rising Stars: The Disruptors Changing the Game

Shopify POS
Shopify is no longer just an e-commerce platform. Its POS system is now the go-to for D2C brands and pop-ups, letting retailers unify online and in-store sales, launch new locations in weeks, and leverage deep customer data.

“Shopify POS gives us one customer view whether they click or tap a card. That’s been a game-changer for our retail expansion.”
— Travis Boyce, Head of Global Retail, Allbirds (Shopify Blog)

Retail on Demand
This shift toward omnichannel isn’t just theory. In May 2024, sleepwear brand Lunya opened three NYC pop-ups in just 21 days using Shopify’s “tap-to-open” iPhone POS. Local press called it “retail on demand,” and Shopify’s stock jumped 7% that week as analysts cited the event as proof of Shopify’s physical retail momentum.
Read more – Women’s Wear Daily, 5/17/24

Toast
Toast is the restaurant industry’s secret weapon. With features like ingredient tracking, kitchen displays, and payroll, it’s not just a POS—it’s a full restaurant operating system. Sweetgreen credits Toast with reducing waste by 15% and speeding up service by 20%.

“Toast isn’t a POS; it’s our sous-chef.”
— Jonathan Neman, CEO, Sweetgreen (Business News Today)

Tip War Fallout
This focus on specialization paid off during Toast’s “tip war” controversy in 2023. After media and customer backlash over automatic tip prompts, Toast responded by rolling out customizable tip screens and launching a “restaurant tech bootcamp” for staff. This quick, industry-specific response restored trust and improved client retention, showing how vertical focus can turn a crisis into a loyalty win.
Read more – The Wall Street Journal, 7/18/23

Helcim
Helcim is winning over cost-conscious SMBs with radical transparency. Its viral moment came when a Reddit thread revealed real savings and honest pricing, leading to a 50% spike in sign-ups.

“Dropped my processing bill from $400 to $320 the first month—no PCI junk fees, no ‘non-qualified’ surcharges.”
— u/mainstreetbooks (r/smallbusiness)

Reddit Goes Viral
This shift toward transparency isn’t just theory. In 2024, a viral Reddit post titled “Helcim vs. Everyone” saw dozens of business owners share screenshots of their savings after switching to Helcim. The company’s CEO even joined the discussion, answering questions directly. This public engagement and openness led to a measurable surge in new customers, confirming that transparent pricing is now a competitive necessity.
Read more – Helcim Blog, 6/2/24

The SMB Payments Giants: Defending Their Turf

Square (Block)
Still the king for microbusinesses and retail, Square’s ecosystem is unmatched for simplicity and breadth. Its new AI-driven loyalty and inventory tools are helping retailers like The Sill boost sales and reduce out-of-stocks.

“Square’s AI-driven inventory suggestions have helped us keep our bestsellers in stock and cut lost sales.”
— Eliza Blank, CEO, The Sill (Business News Today)

AI Boosts Sales
The power of AI isn’t just hype. In January 2025, Square rolled out its AI Loyalty Lab to 10,000 pilot merchants. Early results showed a 7% increase in average basket size. The move was covered by Forbes, which called it “a shot across the bow at legacy POS.”
Read more – Forbes, 1/15/25

Clover (Fiserv)
Clover’s strength is its deep integration with banks like Bank of America, making it the default for many new business accounts. Its hardware and app marketplace keep it competitive.

“Our partnership with Clover has made it easier for small businesses to get the tools they need, right from their bank.”
— Sharon Miller, President of Small Business, Bank of America (Business News Today)

Bank Partnership Pays
This strategy isn’t just theoretical. In Q1 2024, Bank of America began bundling Clover POS with new business checking accounts. The result was a 25% jump in new merchant accounts and a surge in positive reviews, demonstrating the power of bank partnerships in driving POS adoption.
Read more – American Banker, 4/2/24

PayPal/Zettle, Stripe, Adyen
These giants dominate online and hybrid commerce, with Stripe and Adyen especially strong among tech-forward and global SMBs.

DOJ Cracks Down
The importance of fair competition was highlighted in 2023, when Stripe agreed to a $120 million settlement with the U.S. Department of Justice over alleged anti-competitive practices. The company responded by opening its API to more third-party integrations, which analysts say helped it regain trust among developers and SMBs.
Read more – Reuters, 9/14/23

The SMB Payments Losers: Why the Old Guard Is Retreating

Worldpay (FIS), TSYS (Global Payments), Elavon
Once titans, these legacy providers are losing contracts and sales talent at an accelerating pace.

• Worldpay lost a multi-state apparel chain to Shopify after a repricing standoff; leaked memos cite “product gaps vs. omnichannel challengers.” (Brand Spur NG)
• TSYS and Elavon are seeing double-digit attrition as reps defect to disruptors and SMBs demand better tech and clearer pricing.

Sales Team Exodus
The impact of outdated tech and poor support became clear in late 2024, when a viral LinkedIn post by a former Worldpay sales manager described a “mass exodus” of reps to Square and Toast. The post cited “opaque quotas and outdated tech” as key reasons for leaving, sparking a debate on Glassdoor and highlighting how lack of support and innovation can drive talent away.
Read more – LinkedIn, 11/18/24

The SMB Payments Talent War: How the Best Recruit, Train, and Keep Sales Teams

Bootcamp Boosts Retention
The value of investing in sales talent was proven when, after launching its “Restaurant Tech Bootcamp,” Toast saw a 30% increase in new-hire retention and poached dozens of sales leaders from legacy providers, as reported by Business News Today.
Read more – Business News Today, 8/15/24

The SMB Payments Market players. What Should You Do?

For Job Seekers:

• Don’t just ask about commission—ask about inbound leads, demo support, and product fit.
• Choose companies that invest in onboarding and have a product you’re proud to sell.

For HR and MASP Leaders:

• Speed up onboarding, invest in training, and be transparent about comp and quotas.
• Build partnerships and vertical expertise to stand out.

For SMB Owners:

• Use the competition to your advantage: get multiple quotes, demand clear pricing, and ask for references.
• Choose a provider that understands your industry, not just payments in general.

The Bottom Line

The war for America’s SMB payments is being won by those who move fast, solve real problems, and treat both merchants and employees as partners. The old playbook is obsolete. The new one is being written by rising stars, defended by giants, and abandoned by those who can’t keep up.

Sources & Further Reading

• TSG Payments, 2025 Directory Rankings
• Business News Today: Top POS platforms in 2025
• Shopify Blog: Merchant Services
• Brand Spur NG: Top Ten Payments Companies 2024
• Newsweek: Best Merchant Account Service Providers 2025
• Women’s Wear Daily: Shopify Pop-Up Lunya
• Forbes: Square AI Loyalty Lab Launch
• American Banker: Bank of America Clover POS Bundle
• Helcim Blog: Helcim vs. Legacy Processors
• LinkedIn: Worldpay Sales Exodus
• Reuters: Stripe DOJ Settlement
• The Wall Street Journal: Toast Tip Feature Controversy

Join the Discussion:
Is this war good for SMBs, or does it just create confusion? Can legacy giants stage a comeback, or are they doomed to retreat? Will the next big winner be a tech disruptor, a niche specialist, or a company we haven’t even heard of yet?
Share your stories, predictions, and questions below. The next chapter in the battle for America’s SMB payments is being written right now—will you be part of it?

Is That LinkedIn Medical Interpreter Offer Legit? Here’s the Truth Behind the Pitch

Ever get a LinkedIn message promising easy freelance work as a medical interpreter—plus a “must-have” training course? If you’re a newcomer to the U.S. or just exploring side gigs, you’ve probably wondered: Is this a real job, or just a clever way to sell courses?

Let’s cut through the noise. I dug deep into the U.S. healthcare language services market to find out which offers are genuine, who’s really hiring, and how you can actually land paid work as a medical interpreter.

The Problem: Too Many Promises, Not Enough Clarity

The U.S. medical interpreting market is booming, but it’s also crowded with companies eager to recruit—and sometimes upsell—newcomers. For professionals who only occasionally check LinkedIn, it’s easy to get lost in a sea of offers that blur the line between opportunity and sales pitch.

The Reality: Who’s Who in Medical Interpreting

A handful of giants—LanguageLine Solutions, CyraCom, AMN Language Services—dominate the market, serving hospitals nationwide with 24/7 coverage and seamless tech. But there’s also a long tail of regional players and startups, each with their own approach to hiring and training.

Here’s the breakdown:

• The top three companies control half the market and are always hiring, but competition is fierce—especially for common languages like Spanish.
• Mid-sized firms like Liberty Language Services focus on the Mid-Atlantic and are known for onboarding new interpreters, especially for rare languages.
• Most companies require a 40-hour medical interpreter certificate (CCHI/NBCMI-qualifying) as your ticket in.

To give you a clearer picture, here’s a snapshot of the market leaders:

OPI = Over-the-phone interpreting; VRI = Video remote interpreting; Onsite = In-person interpreting

How Do Hospitals Choose Their Vendors?

Hospitals and clinics overwhelmingly prefer the largest vendors, mainly for their 24/7 coverage, rapid response times, and seamless integration with hospital systems. Here’s how the “preference” breaks down among U.S. hospitals and medical clients:

Note: Hospitals often use multiple vendors, so totals exceed 100%.

The Solution: How to Spot a Real Opportunity

Worried that “training required” means “scam”? Here’s what matters:

• Legitimate companies (including Liberty) do offer both training and jobs—but you’re not forced to buy their course if you already have a recognized certificate.
• If you’re certified, you can apply directly for work. If not, their course is one of several reputable options.
• For rare languages, your chances of getting hired skyrocket—some companies hire 70% of new certificate holders in these languages.

To illustrate, here are estimated probabilities of getting hired with a fresh certificate and no prior experience:

What’s Your Best Move?

Want real work, not just another certificate? Here’s your action plan:

1. Get a recognized 40-hour medical interpreter certificate (CCHI or NBCMI-qualifying).
2. Apply widely—especially to companies known for hiring newcomers.
3. If you speak a high-demand language, highlight it. Flexibility and persistence pay off.

Bottom Line

Yes, there are real jobs out there. The U.S. medical interpreting market is hungry for talent—especially if you bring rare language skills and the right credentials. Don’t get distracted by the noise. Focus on certification, target the right companies, and you’ll find genuine opportunities.

Ready to make your language skills pay off? Don’t just scroll—take action. The opportunity is real, if you know where to look.

Sources

• Global Growth Insights: Medical Interpreter Services Market Size, Growth (2024)
• Nimdzi: Top 10 Healthcare Interpreting Providers in the US (2024)
• Business Research Insights: Medical Interpreter Services Market Share, Forecast 2025 – 2033
• KLAS Research, “Communication & Language Access 2024” (summary)
• Company career pages, Indeed, Glassdoor, interpreter forums (2024–2025 data)

If you have questions about specific companies or want advice on how to get started, feel free to reach out or comment below.

By Slava Riumin. Business blogs can be found at https://neploho.agency. I also run the blog “Fell, Got Up” at https://t.me/ruminblog.
The text is published with the permission of the author.
The original text is here.

I burned out as a programmer and turned my hobby into a business. Now I make 37 million a year selling on marketplaces.

I’m 42 years old, and like many IT professionals, I completely burned out by the age of 35. In gardening groups, I became friends with a chemist, and in December 2021, we decided to start producing fertilizers and soil for houseplants.

I didn’t start the trend of selling “crap” on marketplaces, but as an experienced gardener, I decided to take it literally and produce fertilisers instead of manure.

Although sometimes after marketplace tariff updates, there's a temptation to literally deliver manure to the pickup points.

I’ll tell you how to obtain the product using a concrete mixer, a drill, and Uralhim, why Ozon steals measuring spoons, what unpleasant condition Leroy Merlin imposes on manufacturers, why the Chinese don’t want to deal with powders, and how much my production earns and spends.

Usually, home gardening is perceived as a “hobby for old-timers,” with simple cacti or violets.

…

Everyone remembers the semi-alive greens in schools on shelves and windowsills.

In reality, the indoor plant market is worth billions. The cost of rare or trendy varieties of philodendrons, monsteras, alocasias can range from 20,000 to 50,000 rubles. And this is a common occurrence.

Professional fertilizers and soil are required for their cultivation. It’s another gigantic market where billions of rubles are involved. Today, let’s talk about it.

…

In the photo, a variegated Melanochrisum is growing.

If you know the difference between a Monstera and a fern, give a like, and share in the comments which plants accompany you!

DISCLAIMER: The article was written by the author of the blog “Fell, Got Up” based on an interview with the founder of a fertilizer production company, who chose to remain anonymous to preserve relationships with technology giants and retail chains.

Table of Contents

1. Introduction
   .
2. Business in Fertilizers from Scratch, Without Loans, Credits, or Government Support
   .
3. Revenue of Fertilizer and Soil Production
   .
4. Expenses of Fertilizer and Soil Production
   .
5. Profit Potential in Soil and Fertilizer Production

Business in Fertilisers from Scratch, Without Loans, Credits, or Government Support

For the initial purchase of ingredients, my partner and I each contributed 5,000 ₽, and we sold that batch through a VK group of fellow gardeners. Gradually, sales grew, and we first moved into a basement, then eventually to a full production facility.

The process of making our fertilizers looks like this:

1. Develop the formula – we reverse-engineer it using the Chinese method

We take an Indonesian or well-known American fertilizer and perform reverse engineering using the Chinese method.

That means we examine the ingredients listed on the label and ask the seller about the proportions from the perspective of experienced gardeners. Next, we study scientific patents to adjust the proportions. These patents describe the effects of various concentrations of essential ingredients on plants and are, by the way, freely accessible.

This way, we create our own product copy at 30% less cost than the original.

…

The Chinese approach involves taking a well-known product, reproducing it exactly, and then adding your own innovations.

2. Mix the necessary components

In the basement, we mixed the components using a concrete mixer and a drill with attachments.

At the production facility, we use powder mixers instead of concrete mixers, specifically “drunken barrel” mixers (2 units at 84.5 gallons each).

It turns out the classics were wrong when they said a concrete mixer only mixes concrete. It does an excellent job mixing soil and fertilisers too.

3. Package the fertilizers into bags and jars

In the basement, we used a chair, a scoop, and a bucket for this.

At the production facility: you load the mixture into an automatic packer, the machine fills it into jars and seals them. Labels are applied using a third machine.

Automatic packer - 700,000 ₽

Packaging machine - 350,000 ₽

We manually add measured scoops and pack them into sturdy bags with marketplace labeling (if required).

…

1. Primary raw materials: agricultural and fine chemicals.
   .
2. Grind the components into a powdered form.
   .
3. Mix the components according to the recipes into homogeneous blends.
   
   In the photo – the process of fertilizer production. Our fertilizer is half mineral (agrochemicals) and half organic: vitamins, amino acids, phytohormones (fine chemicals).

…

1. We package the fertiliser into PET jars of various sizes.
   .
2. We pack them into crates, palletize, and send them to warehouses or wholesale.

In the photo, packaging of fertilisers.

Similarly with soils: you load the mixture into the packaging line, the machine fills it into bags and seals them. Then you manually apply the label and pack them into boxes.

Packaging line - 950,000 ₽

We manually apply the labels and pack them into boxes.

According to wholesalers’ standards, we have a small volume. Printing houses reluctantly produce 5,000 labels, and if they do, it’s at 10 ₽ per label. But if you order a million labels, they come out to 1 ruble each. Therefore, we print the labels both in the basement and now on a printer, laminate them, cut them with a cutter, and stick them on self-adhesive paper.

…

1. We mix according to recipes. We add anti-fungal additives.
   .
2. Primary raw materials, divided into fractions: zeolites, bark, lava, and others.
   .
3. We pack them into bags, apply labels.
   .
4. We pack them into crates, palletize, and send them to warehouses or wholesale.

The process of soil production

4. We test the resulting mixture.

When introducing a new formula, we first test it on our own plants, then we pass it to a focus group – several familiar gardeners with a variety of plants and families (25 people). We give a trial jar to the laboratory. Then friendly nurseries test it on a mass scale of plants. If everything is fine, the product is launched into production (+ certification).

…

Some succulents have bloomed, while others have acquired beautiful colors, which means we can launch the fertiliser for sale.

At the start of our developments, there are often blatant failures. Complaints about hygroscopicity, clumping, powder hardening, burst packaging, and so on. Fortunately, customers provide feedback and advice – ultimately, we address the shortcomings and move forward.

In total, the estimates for the launch looked like this:

…

1. Concrete mixer
   .
2. Drill with attachments
   .
3. Buckets
   .
4. Shovels
   .
   Total: 200,000 rubles

Basement

…

Production estimate:

Soils:

1. 82.5 gallons mixer. Externally similar to a concrete mixer, but more powerful. 80,000 rubles.
   .
2. Automatic packer for packaging and sealing the mixture in bags. 950,000 rubles.
   .
3. Stone crusher for grinding components to the required fraction. 70,000 rubles.

Fertilisers:

1. Powder mixer similar to a “drunken barrel” (2 units). 640,000 rubles
   .
2. Dosing-packaging machine for packaging powder into PET jars. 700,000 rubles
   .
3. Capper for lids, also a dater, also a labeler. 350,000 rubles
   .
4. Mills for fine grinding of components (2 units). 60,000 rubles

Total equipment cost: 2,850,000 rubles

Production

The main problem in the production of fertilizers and soils is dust and dirt. It’s not like laboratory coats and clean offices. When mixing powders, dust rises, some of it is captured by the exhaust system, and some settles on all surfaces.

…

The same problem exists with soils: peat, stones, zeolites – almost every component generates dust.

Therefore, throughout the entire cycle, workers wear masks and special clothing. Afterwards, thorough cleaning and washing of all surfaces and equipment are mandatory.

…

Visually, it looks like this.

Revenue from the production of fertilisers and soils

As you can imagine, December 2022 was the perfect time to start replacing Western products with domestic alternatives. Some competitors disappeared. Due to sanctions and disrupted supply chains, Western original competitors became more expensive, while our product became 2-2.5 times cheaper, leading to significant growth.

Soils and mineral-organic fertilizers are purchased by everyone who imports, collects, propagates, grows, or resells houseplants, including expensive exotics and super-expensive new varieties.

The monthly revenue by channel is averaged over the last three months.

Marketplaces (WB and Ozon) – 1,410,000 ₽

Problems with marketplaces – items are thrown around, and components are stolen.

As a result, a customer might receive just a bag instead of a bag with fertiliser, or only a jar instead of a jar with a measuring spoon. However, in defence of marketplaces, it should be noted that sometimes buyers steal the measuring spoons and then refuse the purchase.

Warehouses have sealing machines that help reseal the product when the spoon has already been stolen. I don't know why this happens; maybe they use them for their meals.

…

User chose to hide their details: “This is the second product I’ve purchased, but there’s no measuring spoon again.”

Stolen again.

Retail – 190,000 ₽

We sell through a VK group to small towns where there are no Ozon or WB points. In Moscow, customers either pick up their orders or have them delivered by a courier. One person processes orders, and when they’re unavailable due to personal matters, we handle inquiries ourselves.

…

When the gardeners are satisfied, they send their horticultural successes.

Wholesale sales – 600,000 ₽

Nurseries buy wholesale. They nurture imported plants, acquire microclones from Taiwan, and sell them at x10 prices in Russia. To ensure good plant survival, they purchase specific soils and fertilisers.

Group orders – 850,000 ₽

In the most remote regions (Sakhalin, Kamchatka, Khanty-Mansi Autonomous Okrug, Transbaikal, etc.), it’s cheaper for gardeners to pool their resources and order a large batch. The organizer of such a purchase receives a 30% discount on the entire batch (this is their earnings), and in exchange, they advertise for us.

Leroy Merlin and chains – 0 ₽

To enter Leroy Merlin, an unpleasant condition must be met. The price at Leroy Merlin must be lower than the market price. For example, if fertilizer costs 1,000 ₽ in a VK group, 1,200 ₽ on a marketplace, it should be priced at 900 ₽ in Leroy Merlin. At this selling price, they want to buy fertilizers for 450 ₽ because the French markup is 100% of the purchase price. This is 250 ₽ cheaper than our usual wholesale price (our wholesale price is 700 ₽).

So instead of earning 700 ₽, I’ll only get 450 ₽, and this price doesn’t guarantee sales volume, especially since you’re competing with well-known brands on the shelves. Big players like PhosAgro or Uralchem are pushing through huge batches via chains.

In other words, to sell at Leroy Merlin, you yourself must promote the brand through advertising, just like with brands like Head & Shoulders, which were recognized on the shelf thanks to advertising. Otherwise, it’s just like on marketplaces, but with less favorable conditions for me.

Therefore, it's currently more profitable to collaborate with Ozon and WB than with Leroy Merlin.

Resellers – 0 ₽

Periodically, there are those willing to become dealers, and twice we even agreed.

For a reseller to make a profit, they sold at double the purchase price, meaning they bought for 700 ₽ and sold for 1,400 ₽. With such a price, they couldn’t compete with us (we sell for 1,200 on marketplaces). Selling wholesale for less is not interesting for us. And if we start raising retail prices, we reduce demand. It’s beneficial for us to keep prices below the market; then people come to us rather than to the Dutch.

Distributors were relevant before the era of marketplaces: you produce in Moscow, and customers are in Kamchatka. Postage is expensive, and then you need a dealer. They will bring in a wholesale load and resell it at retail there.

But now, with marketplaces everywhere, anyone in the countryside can order directly, and dealer intermediaries are no longer needed. And if we sell to resellers to trade on marketplaces, we have to give them a price of 250-300 ₽ because on marketplaces, the price from the purchase must be increased by three times for the math to work out. And for us, as manufacturers, it’s absolutely unprofitable to sell at such a price, let alone breed competitors.

…

Leroy Merlin and resellers – zero.

Ozon – 580,000.00 rubles

Wildberries – 830,000.00 rubles

Retail – 190,000.00 rubles

Wholesale – 600,000.00 rubles

Collective orders – 850,000.00 rubles

Total: 3,050,000.00 rubles

Production expenses for fertilizers and soils

Expenses calculated based on a turnover of 3,050,000 ₽.

Suppliers (ingredients and packaging) – 610,000 ₽

In nature, organic substances are generated by mold, bacteria—everything that exists in the soil. That’s why it’s not necessary to heavily fertilize plants in the field; minerals suffice—nitrogen, phosphorus, potassium—and the rest will come from nature. However, for potted indoor plants, nothing naturally comes to the pot, so besides mineral fertilizers, organic additives (fine chemistry) are included—vitamins, amino acids, phytohormones, sugars, and so on.

We source mineral fertilizers in Russia. We traditionally have many fields, so mineral fertilizers are abundant here. Russia also accounts for 16% of global exports in this sector. Previously, we bought from resellers, which was twice as expensive, but with a small volume, we couldn’t deal with major suppliers like PhosAgro and Uralchem, as they only deal with orders of at least 1 ton.

As for fine chemistry—vitamins, phytohormones, amino acids—we get them from China; they simply aren’t produced here. The Chinese trick is to dilute everything with maltodextrin, a derivative of white starch. As a result, you get a vitamin where half of the bag is maltodextrin. However, maltodextrin isn’t a problem in our business; in such cases, we can just use double the diluted component.

To avoid being deceived in China, you can find a buyer. These are specially trained individuals who speak both Russian and Chinese.

…

Through the website 1688, buyers purchase what you need, verify it, and send it to Russia.

An isolated issue in our niche is that no one wants to deal with powders. Customs scrutinise powders carefully.

…

You never know what you’ve mixed in there.

Your shipment from China can either be transported by auto as a consolidated cargo or in a maritime container, and you pay $1.5-2 per kilogram. That’s why we’re trying to transition to working with Russian wholesalers. They buy in bulk from China and distribute in Russia. It’s cheaper for them because large wholesalers fill a whole container with their goods, and the delivery cost per kilogram is only a few cents.

But we’ve had problems with other countries as well. For example, last year we ordered 20 tons of volcanic lava from Armenia for our soil. We expected stones sized 3-5 mm, but we received a truckload of lava sized 4-8 cm. We had to buy a crusher.

The 610,000 for suppliers is the total amount of purchases for the year divided by 12. We don’t calculate the cost for each item like large factories do because inflation has hit, and everything has gone up in price. The dollar has increased, Chinese components have become more expensive, etc. We just use a simple Excel sheet. I think 90% of accounting is the ability to input data, you can even do it in a very convenient accounting service, you just need to be diligent and enter the numbers. For now, it’s enough for us.

…

Self-employed – 342,000 ₽

We are located in an industrial zone (food industry, metal rolling), and nearby there is a workers’ settlement where many are interested in part-time work. We have a WhatsApp group with 8 people who work for us regularly. We set a project, for example, on Fri, Sat, Sun, the task is to produce, package, and pack 4,000 units of product. And whoever is available comes – usually 3-4 people.

Currently, we pay 1,000 ₽ per hour, and from this amount, the person pays taxes themselves. When we paid 500 ₽/hour, there was a high turnover, people could earn more easily as couriers.

If there are any issues, for example, if we prepared components for 4,000 jars, but we are told that only 3,500 jars were produced, we start checking the surveillance camera recordings.

Once we found out that a bag containing one of the components had been spilled, swept up, and simply thrown away.

People tend to stick to this job because they like the pay rate, so there are few problems.

…

We don’t prohibit the guys from taking fertilizers for their own flowers; they take one jar once every six months, which doesn’t make us poorer. Besides, fertilizers are not stolen willingly in general.

The main value of our company is the formulation, the secrets that cannot be shared with anyone. Therefore, when we invite employees, we prepare the components in such a way that they do not understand the composition; otherwise, this formulation will quickly leak from us. Our task is to prepare the bags, mix the fine chemicals into the primary mixtures. And we show the employees which bags to use to get the final product. These bags are already not labeled with what is what, and visually, you cannot guess.

Marketplaces – 496,800 rubles

At a turnover of 580,000 rubles, Ozon consumes 214,600 rubles (37%).

At a turnover of 830,000 rubles, Wildberries consumes 282,200 rubles (34%).

Tariffs are constantly changing, but for now, the margin allows it. We don’t buy premium, we don’t promote, we don’t monitor competitors, we don’t participate in promotions, and we don’t create colorful cards. Traffic on marketplaces is purely organic, through word of mouth – people search either by brand, product name, or through direct links.

…

To find us, you either need to know the exact name or click on the “Next” button. Currently, we are at the 250th position.

I think if we start advertising, we’ll end up giving away the remaining profits to the marketplaces. Additionally, we’ll have to produce more, deal with a lot of disloyal customers, and face many complaints. In essence, we’ll be producing more, earning less, and essentially working for the marketplaces.

…

Review: “Maxim: Pros – happy plants. Cons – none.”

Certification (spread over the year + government registration) – 100,000 ₽

In Russia, certification for fertilizers and pesticides is complicated, and everything remains from Soviet times, tailored to large enterprises. The agro-industry is state-owned, and it is not profitable for it to allow small companies into this sector, so they do not change the requirements, and they are very stringent.

To register mineral fertilisers, you need to pay 3 million for one position.

Exactly, for our 17 positions, we would have to pay 50 million. We wouldn't make that much income in 10 years.

Got it, since our fertilizers are not purely mineral but organic-mineral, with half minerals and half organic components, we don’t need to go through the Ministry of Agriculture and register with Rosreestr. Instead, we just need to obtain a declaration of conformity to GOST standards. This is a simpler process, and the certification for each product costs around 100,000 ₽ including testing. We have 17 products, and we periodically certify new ones, so I’ve budgeted 100,000 ₽ per month for certification expenses.

Advertising – 0 ₽

Group on VK, a few giveaways – and that’s it. We don’t run contextual ads, don’t attend exhibitions, and don’t engage in barter in exchange for praises about our products. We haven’t been working on the design of the group and cards for a long time – “it’s good enough as it is”.

Everything that promotes us at the moment is free word-of-mouth. There are plenty of groups and chats among plant enthusiasts – that’s where all this magic happens every day without breaks on weekends.

…

Review: “Pros: I love this stimulator. Plants grow roots superbly, quickly, and adapt painlessly.”

I believe that the best advertisement is recommendations from those who use the product, are satisfied with it, and share their emotions and impressions with others. And the overall estimate looks like this:

…

1. Taxes (7% of revenue) 213,500.00 rubles
2. Cost of goods (materials plus packaging) 610,000.00 rubles
3. Rent (plus utilities plus cleaning) 100,000.00 rubles
4. Equipment and depreciation 150,000.00 rubles
5. Certification (spread over the year plus government registration) 100,000.00 rubles
6. Payroll for order processing and assembly (3 employees) 150,000.00 rubles
7. Ozon commissions (37%) 282,200.00 rubles
8. Logistics (pallets and boxes, stretch wrap, and delivery to the marketplace) 50,000.00 rubles
9. Unforeseen expenses 40,000.00 rubles
10. Accumulated balance (reserve fund, 5%) 152,500.00 rubles
    

Total: 2,304,800.00 rubles

The total expenditure on turnover of 3,050,000 ₽ amounted to 2,304,800 ₽.

How much can you earn from the production of soils and fertilisers?

In the basement, the variable expenses included rent – 15,000 ₽, ingredient purchase for 700,000 ₽ revenue – about 100,000 ₽. We mixed, packaged, and sold everything with my partner. Since the process was not well-organized, we had about 5-7% returns. But still, out of 700k revenue, we managed to make about 300k profit.

If we look at the average over the last three months, the monthly calculation is as follows:

…

• Revenue: 3,050,000.00 RUB
• Expenses: 2,304,800.00 RUB

Total (for two): 745,200.00 RUB

For 745,200 RUB between the two of us, we each spend about 60 hours per month. I handle the formulations and production, while my partner takes care of finances, procurement, managing non-production staff, and order issues.

Currently, the quarterly growth is around 18-25%, and last year it reached up to 40%. There is virtually no seasonality (unlike the agrochemical market for summer cottages and gardens). The biggest contributors to growth are marketplaces and bulk orders.

In conclusion, I believe it is more sensible to invest in the product rather than advertising. A good product naturally encourages people to advertise for you.

…

Reviews: “Hello everyone! I read a post here that after using Micro Plus, orchids started to bloom. I decided to try it too. And indeed, after just one application, some of my orchids started to bloom (they rarely bloom for me). I recommend it.”

And there’s no better advertisement than that.
Thank you for reading, and please water your plants, not me, in the comments.

Credits

DISCLAIMER: This article was written by the author of the blog “Fell, Got Up” based on an interview with the founder of a fertilizer production company, who chose to remain anonymous to maintain good relationships with technological giants and retail chains.

I run the blog “Fell, Got Up,” featuring stories about real businesses, not just “success stories.”

You’ll read about: how I opened and failed a chain of nightclubs, how to properly glue cardboard to sell it on marketplaces for 50 million rubles a year, how a farmer spent 250 million in a village, why dumpling production is dying in the provinces, why a taxi fleet with 300 drivers and 40 cars is no longer a business, how a techie restored a Soviet camp but fell into a 60 million ruble cash flow gap, and other stories.

I write these articles for my blog, and my team and I also create commercial blogs, such as the blog for MoySklad. If you need content marketing, for example, on Habr or vc.ru, contact Ryumin.

By Slava Riumin. Business blogs can be found at https://neploho.agency. I also run the blog “Fell, Got Up” at https://t.me/ruminblog.
The text is published with the permission of the author.
The original text is here.

How one person’s ideas can destroy an entire city and strangle the auto industry throughout the country

…

Hey, it’s KOMREDA: Stories. We’re actually a content marketing agency, but we tell stories just for fun.

In 2013, Detroit was declared bankrupt with debts of $18.5 billion. It’s the largest American city ever to file for bankruptcy.

Today in this article, we’ll tell you:

• how Henry Ford sent the wrong person to the USSR and thereby killed the entire automobile industry in the USA;
  .
• why all the problems stem from childhood;
  .
• why using sledgehammers and stickers against competitors is necessary.
  
  It’ll be packed, we promise.

The main culprit.

Meet Walter Reuther — the highest-paid mechanic at the Ford plant.

…

In the 1930s, Walter organized the UAW (The United Auto Workers) — a union for automobile industry workers, which ultimately contributed to Detroit’s downfall.

Why did Walter decide to help the workers?

From a young age, Walter and his brothers were instilled with ideas of equality, brotherhood, and a world of broad opportunities for everyone. Every Sunday, their father organized debates for his sons to reflect on social issues: yellow journalism, child labor, civil rights, and the rights of women and black people. Quote:

On my father's knees, we studied the philosophy of the labor movement. We are confronted every day with the struggles, hopes, and aspirations of the working class.

At the age of 19, Walter got a job at the Ford plant and quickly rose in his career and salary. When he was 21, Ford offered him and his brother Victor to go to the USSR for 3 years and teach Russians how to work. Ford had sold its automobile assembly line technology to the Soviet Union, and someone had to show them how to use it.

…

In the USSR, Walter was shocked. People worked in half-destroyed factories, lived in unheated barracks, ate poorly, while the management lived in luxury and didn’t care about any improvements in the factories. Walter even wrote letters to various committees and to the Moscow Daily News, an English-language socio-political newspaper, criticizing how the communists managed the factories.

Walter lasted in Russia for almost two years and snapped. He took his brother Victor, bicycles, and went on a tour. On bicycles. From Nizhny Novgorod to Japan. On bicycles! He said he wanted to see how people worked in other countries. The irresponsible Soviet people really got to him. By the way, before arriving in Nizhny Novgorod, the brothers also cycled all over Europe.

Later, Walter said that the trip taught him a lot. He said:

All people on earth crave simple things: jobs with certain guarantees, vast opportunities for their children, and, of course, freedom. We feel that we can contribute to the common cause and help American workers build strong and democratic unions. That's why we joined the labor movement.

Walter’s three-point plan to help American workers:

After returning from his journey to Detroit, Walter decided that if he wanted to help workers in the automobile industry, he needed to go after the top three fattest producers: Ford, General Motors, and Chrysler.

He couldn’t do it alone, so he turned to his brother Roy.

…

Roy also felt deeply for American workers. By the time Walter approached him, Roy was already involved with unions himself, seeking to improve conditions in factories and bring back workers laid off during the Great Depression.

The brothers decided to form a workers’ union. That’s how UAW came into being, with nothing but good intentions. Later, however, all those intentions seemed to vanish somewhere, but more on that later.

Walter’s first strike

So, the target was the top. And Walter decided to start with “Ford”. But simply walking in and causing a stir wouldn’t cut it. So Walter decided to approach from the side — through the “Kelsey-Hayes” plant, which supplied “Ford” with brakes and wheels.

…

Walter learned that “Kelsey-Hayes” wanted to speed up production. And at this plant, workers already occasionally lost fingers, limbs, and sometimes even their lives. They complained that it was difficult to keep up with the constantly increasing production speed. That was the reason for the strike.

Walter sat the workers down. Literally. The workers refused to get up and leave until management spoke with Walter, their representative. Management attempted to enter the plant and remove equipment, but thousands of sympathizers blocked the passage from the outside of the plant.

A strike is the conveyor’s worst nightmare. Everything that goes down the line is products from other productions, where similar conveyors work. And if assembly stops, for example, wheels, then the entire production stops: cars will only be assembled up to the “inserting wheels” stage. And then nothing. There will be no cars, sales will collapse, dealers won’t get goods, managers won’t earn from sales, customers will turn to competitors, and the brand’s reputation will plummet.

…

A halt in the conveyor, even in one spot, immediately disrupts the entire production system. Restoring the operation of all companies requires a lot of time and money.

Let’s remind ourselves that “Kelsey-Hayes” supplied brakes and wheels to “Ford” — a major client that they didn’t want to lose. Therefore, the strike only lasted for 10 days. “Kelsey-Hayes” agreed to slow down production and provide equal pay for women. Additionally, UAW prohibited the company from firing workers who join the union.

Even if these workers were slacking off, drinking, and not showing up to the plant — to fire them, permission from UAW was required.

So now only Walter could decide who to fire and who not to.

After this event, everyone learned about UAW. 200 union members turned into several thousand. And Walter went to other plants to organize even more strikes.

Strike in Flint

When Roy and Victor learned about the victory, they immediately drove to Flint, a suburb of Detroit. And exactly one week after the end of the strike at “Kelsey-Hayes”, they sat down the workers of “General Motors”. It was December 31st.

The workers declared that they would celebrate the New Year at the plant and would sit for as long as necessary until the management made concessions and joined UAW, which had previously saved the workers of “Kelsey-Hayes”.

…

At that time, “General Motors” was the largest automotive corporation in the world, so they could withstand the strike. The management waved off the workers and cut off electricity and heating at the plant. They said, “If you’re going to act up, then so will we.” The workers were freezing, but they didn’t leave the plant.

A few days later, the whole country decided to support the guys from Flint, and sit-down strikes spread across the states.

The police came to the plant in Flint, trying to negotiate. Negotiations were conducted with tear gas and bullets. Meanwhile, Victor drove around in a car, shouting through a megaphone, urging the workers to resist. The workers sprayed the police with water from fire hoses. The temperature outside was -8°C.

The state governor sent 2,000 people from the National Guard. He didn't want to remove the workers from the plant, but to ensure safety.

…

General Motors owned the only plant in the country that produced engines for Chevrolet — their biggest client, from which the main income came. And when this plant also sat down, General Motors surrendered and signed a contract with UAW. The strike in Flint ended 44 days after it began.

Quote from Brother Walter about the Flint strike:

When the guys walked out of the plant, I had never seen such a night, and I probably never will. It was as if the whole country had gained independence, families were reunited for the first time since the start of the strike, children ran into their fathers' arms with tears in their eyes. It was a sea of humanity, where workers no longer felt fear.

A month later, 60,000 Chrysler employees were sitting on the floor. The strike lasted for four weeks. And they too signed a contract with UAW. Two out of three were wearing hats.

The ‘genius’ plan for Uncle Ford

The only one who understood what was going on was Henry Ford. He was against unions. To prevent workers from joining them, he empowered his security guards to roam the factories and ‘physically punish’ anyone who mentioned their rights or joining the UAW. This happened rarely because Ford’s workers labored at the most comfortable plant in Detroit and earned three to five times more than others. Therefore, they valued their jobs and understood that if they acted up, they would be fired. And somewhere else would be much worse, and even the UAW wouldn’t help.

Walter understood that everything was very well organized at Ford’s factories. And there was also a mini-army of three thousand security guards. It wouldn’t be possible to just storm the factory and cause a commotion. A plan was needed.

Two months after the strike at Chrysler, Walter invited friends and journalists to the Ford factory. There he simply handed out leaflets and called on them to join the happy 300,000 workers from other plants.

…

Ford’s security guards didn’t bother Walter and his company. So what if they were handing out leaflets? Nothing else happened—workers just took the papers and went back to work.

Movement was needed—Walter took two more UAW leaders and tried to force their way through the gate to get onto the factory grounds. But this couldn’t be done. Handing out leaflets was questionable, but okay. But no one invited him onto the actual premises.

For attempting to enter without an invitation, Ford’s security guards roughed up Walter and his friend, leaving them with bloody faces.

…

Walter Reuther (left) and Richard Frankensteen (right, also from the top of UAW). As you can see, Richard got much worse, but the press only wrote about Walter.

In essence, Walter just got his nose broken a bit, but the press really tried hard and solidified Walter’s title as the man who fights for workers’ rights to the last drop of blood.

The press started going all out against Henry Ford. Earlier, in 1932, there was the Hunger March—a procession of 5,000 people, which the headlines dubbed as the “Ford Massacre.” The press wrote then that the Hunger March started peacefully, but when the procession approached the Ford plant, they were met with clubs and bullets. Five workers died. Henry Ford took a beating from the press back then.

…

Walter got it from the security guards in 1938. Only six years had passed—the hunger march was still fresh in memory, and Ford was attacking people again. It didn’t matter that UAW provoked it themselves. So Walter’s broken nose was carried like a red flag. They wrote something like, “Workers of all countries, unite, or Ford will do the same to you.”

Ford tried to defend himself however he could. Four years after the provocation, he also accepted UAW’s conditions.

First closed plant in Detroit

UAW brought down the biggest manufacturers and gradually began to control smaller factories.

While the big three could withstand strikes because they could compete and make money selling cars, Packard couldn’t. First, UAW shut down several factories supplying parts to Packard, and then the Packard workers themselves went on strike. As a result, the factory closed in 1958, leaving 40 thousand workers jobless.

…

The factory still looks like this to this day. It’s gradually being demolished, but not very actively.

The building in the city center has turned into a huge abandoned area, attracting all the “undesirable” population of the city.

It can be said that the closure of "Packard" became a symbol of the impending collapse.

After the factory closure, those left without jobs began to leave the city abruptly. Only those who were extremely impoverished remained—mostly African Americans. With no work available, the situation worsened with the presence of white-hooded figures exacerbating tensions. Street protests, riots, police sirens, and increased military presence became more frequent for safety measures.

…

The final nails in Detroit’s coffin came from the Germans, the Japanese, and the UAW

Factories were slowing down, workers were being laid off, but some still remained. They had to work, they had to earn money. But in the 1950s, car sales suddenly plummeted, not because people lacked money, but because foreign cars appeared in the States, and manufacturers faced competition from other countries for the first time.

The first foreign car for Americans was the Volkswagen Beetle. It was several times cheaper and consumed less fuel. Americans saw the tremendous demand for the Beetle and tried to compete somehow. But the workers, who couldn’t be fired, didn’t care about the quality of their work, and unreliable and crooked cars often came out from under their hands. The cost of maintaining an American car skyrocketed—cars cost tens of thousands of dollars, consumed 6 gallons per hundred miles, often broke down, and parts were also expensive, not to mention that fuel prices went up.

…

People wanted cheap ordinary cars. The American automotive industry understood that it needed to change. But UAW hung over them and prohibited doing anything that could negatively affect the workers’ comfort, even if it meant preserving the industry.

And they couldn't care less that without the industry, there would be no workers, no Detroit, and no UAW itself.

Manufacturers tried to beg UAW for permission to restructure the assembly lines, production, and come up with new cars. But UAW refused and decided to be cunning. They engaged in propaganda to turn the population against foreign competitors. For instance, they bought Japanese cars, displayed them in public squares, and handed out sledgehammers to passersby. Yes, you read that right. To smash the cars.

…

People fell for the propaganda. And smashing cars didn’t just happen in public squares. It became normal to wake up in the morning and find out that your Japanese car had been stolen, vandalized, or set on fire. Not because you were a bad person, but because you bought the wrong car.

Laid-off factory workers were told that it was all the fault of the Japanese. They came and disrupted the American economy, rather than acknowledging that there were no jobs because UAW prohibited anything that could compete in the market, like reconfiguring assembly lines.

UAW members were even given bumper stickers reminding them of Pearl Harbour…

…

“Those same people who brought you Pearl Harbor brought you this. Be an American — buy American.”

And here it is, a little more minimalist:

…

Germans and Japanese were capturing the market so quickly that at some point even the American government stepped in. They issued a decree that reduced the volume of imported foreign cars. Upon seeing this, Honda and Toyota… built their own factory near Detroit. And UAW couldn’t infiltrate there because the factory operated under Japanese conditions, and union rules didn’t apply to them.

Manufacturers couldn't do anything against their competitors. They missed the market, and UAW didn't give them the opportunity to recover.

Workers didn’t want to work, UAW prevented restructuring of production and reallocating resources, car sales were weak, and automakers were running out of money. Factories were closing, jobs were being cut.

The city saw more and more abandoned buildings and closed businesses (not just automotive ones). The number of unemployed people was also increasing, and criminal gangs and drug trafficking were on the rise. Those who couldn’t leave had to find a way to live and make money.

…

Mostly marginalised and predominantly African American population remained in the city, organizing gangs. In the 70s, they almost entirely controlled local drug trafficking, which was growing due to heroin and cocaine epidemics. The city was then dubbed the murder and violence capital. This destroyed urban tourism, and other countries even issued warnings about Detroit for travelers. There could be no talk of reviving the status of the automotive industry king.

Frequent strikes shook protest sentiments among people. They were used to achieving their goals through undemocratic methods. Perhaps if it weren’t for this, Detroit would be different now.

And now Detroit is like this: life exists only in the downtown area. Buildings are being rebuilt there, cultural people are being attracted to turn the city into an art capital, and many sports competitions are being held, attended by tens of thousands of people. But the population talks about Detroit as if all the rebuilt and entertaining aspects are just facades for the sake of facades, and in essence, the government is not doing much to bring the city into order.

…

Beyond downtown, almost no one lives there; everything is destroyed, abandoned, and looks grim. There are areas where even the police don’t go. Ordinary people carry weapons in their pockets because they fear for their lives.

In the 1950s, the best time for Detroit, almost 2 million people lived in the city. After the Packard plant closed, people started leaving, and the population was decreasing every year. Now only 630,000 people remain in Detroit.

Bottom line

The main reason for the decline of Detroit is usually attributed to the UAW and Walter Reuther. If we judge Walter based on what we’ve written above, then his activities raise questions in some places. But what doesn’t raise questions?

• He devised a plan for Roosevelt to produce 500 aircraft per day through automobile factories, thus aiding in World War II.

• He persuaded Kennedy to create an organization that would later become the Peace Corps.

• He assisted Martin Luther King Jr. in marches against racism and spoke alongside him at the same microphone.

• He discussed civil rights legislation with Kennedy.

• He donated $50,000 from the UAW to striking sanitation workers, which was the largest financial contribution from any external source.

• He established the Department of Conservation and promoted environmental ideas, urging the purification of water, air, landfills, and slums, and advocated for creating “a common habitat worthy of free people.”

• He funded the first Earth Day, printed and distributed all necessary materials, and mobilized UAW members to participate in public demonstrations across the country.

…

And here’s another ambiguous fact: Walter, while advocating for workers’ rights, doesn’t seem to have been a communist because he fought against communist views within the UAW and expelled openly communist members from there. He even met with Khrushchev to discuss the fight against communism.

But! Despite this, Walter was constantly accused of being a communist, and there is evidence of his close friendly and financial ties with the Communist Party USA, which supported all of his activities and openly declared it. Walter vehemently denied his connections, but he began to deny them only when communists in the United States became sharply disliked.

That’s Walter Reuther for you. But you can draw your own conclusions

If you liked the text, you can order one for your company.

At KOMREDA Agency, we create blogs, media content, special projects, social media content, and much more. And in our Telegram channel, we share tips on building profitable content marketing strategies.

By COMREDA: Explore business, marketing, scandals, intrigues, and investigations through the lens of the content marketing agency project KOMREDA: https://komreda.ru/
The text is published with the permission of COMREDA.
The original text is here.

In November we wrote about how to “digitize” an apiary and turn it into “bee sharing”. In this article, its author, Artem Zharov, talks about the economics of the project and the change in business model.

https://pchelosharing.ru/
By Artem Zharov Founder and designer of BeeSharing and BeeSharing/Gift

Bees in the hive

Actually, the figure of 40 kopecks per year is not entirely accurate. To begin with, on average, a bee lives for 3-4 weeks, meaning each season sees 4-5 generations of bees working.

The 50,000 bees in a hive is also an average number during the peak cycle of the bee colony’s life. When summer begins, everything is in bloom, and the queen bee produces as many bees as possible.

…

“Only bees are better than honey”

Moreover, not all bees gather honey. Apart from the basic division of bees into the queen, drones (males, needed solely for fertilization), and worker bees, there is also a division based on roles, specifically by age. The bee’s body develops, and along with that development, its functions change. The list is ordered by increasing age:

• Cleaner bees
  .
• Builder bees
  .
• Nurse bees
  .
• Guard bees ‍
  .
• Ventilating bees
  .
• Forager bees (peak of bee development)
  .
• Scout bees
  .
• Water-carrying bees (old age of the bee)

But since all roles are necessary for production, we can calculate on average.

Bees can gather from 30 to 100 kg of honey per season depending on conditions. Obtaining 50+ kg is possible with an industrial approach, collecting nectar from agricultural fields.

This is 108% not our option because, at a minimum, we dislike monofloral honey (gathered from a single crop), and pesticides can easily find their way into honey.

…

Our bees gather around 40 kg, and half of this honey needs to be left for the bees for autumn, winter, and spring. So, we or the hive owners get a yield of 20-23 kg (last season resulted in 21 kg).

Industrial honey

The cost price of industrial honey is 20-40 ₽ per kilogram.

A kilogram of industrial honey in bulk costs 100-250 rubles.

In small wholesale, it goes up to 300 rubles, and at retail directly from the beekeeper, it can be up to 500 rubles.

At fairs, it can reach up to 700 rubles if purchased in 1-2 kg quantities.

In a store, after processing and packaging in a beautiful (or not so beautiful) jar, it can be around 1000-1200 rubles per kilogram.

…

Typical honey packaging is the complete opposite of our vibe.

The cost price of such honey is around 20-40 rubles per kilogram, depending on the arrangement of the apiary, its size, and most importantly, the yield.

All such apiaries use sugar, do not value the life of bee colonies, and do not hesitate to use industrially produced antibiotics, and so on.

…

COG of honey manufacturing.

If a beekeeper sells bee packages and other beekeeping products besides honey, having 500 bee colonies can generate a net income of up to 4 million ₽ per year. Blood money in the honey business.

…

Possible profit in an industrial apiary with 500 bee colonies: 4,000,000 per year.

Homegrown honey and honey from eco-friendly apiaries

Products like these are rarely sold in large wholesale quantities (several tons) because, with minimal sales skills, they can be sold at a good retail price. Also, there are rarely such large apiaries with such an approach.

Average cost price of homegrown honey: 200 ₽ per kilogram.

Summary of indicators and distinctive features:

• Yield: 30 to 50 kg depending on the region.
  .
• More work on the apiary.
  .
• Higher expenses for treatment and prevention.
  .
• No expenses for fuel, as the apiary is stationary.
  .
• Average cost price comes out to around 200 ₽ per kilogram.

…

COGS of eco-friendly apiary.

Apiaries that are now joining BeeSharing sell their honey in small wholesale for approximately 600-650 ₽ per kilogram. This often exceeds or equals their retail price. However, unlike retail, they don’t need to deal with:

• Packaging
  .
• Delivery
  .
• Marketing
  .
• Sales

Moreover, this is an expansion of the apiary without additional investments – hive acquisition is covered by us.

Thus, by selling through BeeSharing, adding a hundred hives results in an increase in the net profit of the existing apiary up to 1.6 million ₽.

…

1.6 million per year. This is an increase in the profit of an eco-apiary of 100 bee families working through bee sharing.

Working independently, without our platform, a beekeeper is forced to handle packaging, delivery, find clients, rent sales points at fairs or markets, advertise on platforms like Avito, maintain a blog…

Even if they sell at double the price, at 1200₽/kg (though discounts are common, especially for purchasing larger quantities like a 3L jar), the net profit comes out to roughly the same 650-700₽. Additionally, instead of staying at home with the kids and relaxing, they have to deal with sales.

…

Our additional values

We have our own apiary, and the figures above are partly based on it.

However, in addition to the apiary, we are developing a platform for beekeepers and a personal hive account for customers. So, in BeeSharing, apart from apiary costs, there are also the following expenses:

Content: It amounts to almost 350k per year, including:

1) A photographer takes photos and videos for photo reports published in the personal account. On average, 2-3 shoots per month.

…

2) A photographer takes photos and videos for photo reports published in the personal account. On average, 2-3 shoots per month.

…

Illustrations and design. It costs 250k per year. We create packaging for honey and related items. In our catalog, there are 50+ design templates, and each hive owner chooses how their yield will look as we approach autumn.

…

Including, we also create custom designs for clients. For example, here is a sketch of a label for the Cinemapicnic apiary of director Maxim Rusanov. The concept was approved on the first attempt:

…

Packaging and dispatch of orders + support — 600K per year. We package honey in St. Petersburg, not in the Krasnodar Krai where the apiary is located. From there, we dispatch parcels to customers using a courier service. Shipments usually reach Moscow within a day, and for St. Petersburg, we often provide same-day delivery.

…
New Year’s gifts for the employees of Pasha Molyanov’s “Let’s Do It” agency

Hosting, services, and such — 50K per year

Office rental — 480K per year. For packaging and for me. I have too many children to work from home

Communication at the apiary — 36K per year and a one-time (hopefully) 100K for equipment.

https://pchelosharing.ru/gift

And also: a discount of 9.99% with the promo code “СКОРО14И23”.

https://pchelosharing.ru/
By Artem Zharov Founder and designer of BeeSharing and BeeSharing/Gift

…

In the photo, it’s me and Vladislav Korkin, the owner of the franchise “Useful People Agency” in Samara.

Vladislav Korkin, a former intelligence officer, taxi driver, and investor, is now the owner of the "Useful People Agency" in Samara. He shared a method on how to quickly find clients, even if the market is not in your favour…

A good salesperson should drive the market, not wait for a client with money to fall into their lap!

Vladislav expressed his dissatisfaction.

Later, Vladislav revealed his method for driving the market and achieving quick sales…

Gamification in Real Estate: Vladislav is no ordinary person, I thought…

During the conversation, it was revealed that in the past, Vladislav was a military conscript, a reconnaissance officer, and also worked as a taxi driver, investing in a taxi fleet in Moscow. As we know, there’s no such thing as the “former officer”!) ))

…

TV journalists are conducting an interview with Vladislav Korkin.

In 2017, unable to find employment after completing his military service, he took a job as a taxi driver. After some time, he owned four cars and serviced Domodedovo Airport.

… I earned over 500,000 rubles in a month, after covering expenses and taxes.

Vladislav was telling this story during his interviews.

And then the pandemic hit, and everything collapsed. Vladislav moved to Samara, where he founded his own real estate agency, which soon skyrocketed in sales in the region.

The headquarters of the “Useful People Agency” noticed the surge in sales and offered to buy the franchise for Samara from him. Vladislav agreed, and that’s what he did.

…

The secret to the sales growth lies in…

Initially, it’s important to understand that there is a limited number of customers in the market, and merely wanting to sell something won’t increase their numbers.

Vladislav says

So, it doesn’t matter what we are selling. Whether it’s an apartment, a plot of land, or a website creation service: the essence is the same; deciding to start doing it doesn’t magically increase the number of customers.

You either have to sell or leave the market!

Vladislav emphasises.

It means that there’s no point in putting an offer on the market that the market is not ready to buy. You should either present the offer below the market to attract maximum attention from the customer, or not present it at all.

We all understand perfectly well that the market price of an object is the amount of money people are willing to pay today. Everything else is just your biases.

Vladislav Korkin believes so.

…

Following the principle of “work only with those who want to sell,” Vladislav prioritizes whom to work with first, thus conserving his own resources.

… Typically, I suggest lowering the price by 25% below the market average to generate a surge in phone calls…

Vladislav is revealing his method.

The essence of this action is simply to gather all the buyer demand from the market.

We sell during the showing, in face-to-face meetings, not in advertisements.

Vladislav emphasises.

“We sell during the showing, in face-to-face meetings. With this approach, you gather everyone interested in buying in a specific location. In other words, there are simply no other buyers in the market in that place at that time,” notes Vladislav.

“Logical,” I thought, “if the offer is significantly below the market, then the maximum number of potential clients, including bargain hunters, will be interested. That’s why I asked a few more questions.”

…

“Selling cheaply is easy for anyone, are your clients really satisfied?”

Vladislav very elaborately and persuasively defended his position:

“Firstly, I separate those who just want to look from those with money who are genuinely ready to buy!”

Vladislav pointed out.

“Secondly, having gathered everyone interested in buying a particular property, I propose participating in an anonymous auction to raise the price,”

Vladislav reveals his trick.

So, at this point, all the people who could genuinely buy the offered property are in one, figurative, information space where the auction takes place.

“And are people genuinely willing to bargain and increase the price?”

“What choice do they have?) ) Initially, it’s the best offer on the market. Of course, they want to compete for it. Those who don’t want to, are not our clients,”

Vladislav notes.

I would like to add that, besides the initial manipulation based on greed, gamification is also involved in the trading process. It’s a complex and very interesting concept!

…

For example, the following Octalysis drivers are activated: social pressure, scarcity, fear of loss, unpredictability of the outcome, achievement, reinforced with a special significance from within the participant.

In general, it’s almost a complete set for competing fiercely and striving to be the first!

And is it possible that the seller does not want to sell at the final market-offered price?

Certainly. In this case, we conclude that our client lacks the proper motivation to sell. We either counteroffer or remove the property from the market to prevent other participants from considering a false value.

Vladislav notes.

But usually, if everything is done correctly: effectively gathering all the market demand and conducting negotiations and showings skilfully, the market offers the maximum possible price for the property. This price, by the way, may even exceed the initial expectations.

Vladislav Korkin says.

How much will the price increase at the auction?

Essentially, the property sells for the highest possible price it can fetch. No one would have bought it for a higher amount.

Korkin notes.

Not always does the price surpass the seller’s initial expectations; sometimes, those expectations are inflated. However, the method allows selling the property for a price higher than what it would realistically fetch in the current market situation.

However, there are rare cases when auction participants get so caught up in the competition that they exceed the initial offer by two or more times.

…

There was a case when two Armenian friends wanted to buy a land plot for 500,000 rubles. Unaware of each other, in the heat of the moment, they negotiated up to a sum of 1,000,000 rubles, and we closed the deal…

Vladislav Korkin recalls.

Actually, the method described by Vladislav is applicable not only to real estate or goods. It is actively used during the sale of tokens, limited-volume services, and access rights to exclusive events.

This phenomenon is called the "fear of missing out" or FOMO. It is the fear of missing out on something important, a profitable opportunity, including for profit, or simply the fear of being left out of interesting events. For example, in trading and investing, this syndrome manifests as the desire to buy or sell assets immediately just because everyone else is doing it.

And naturally, it’s worth considering how to apply FOMO in your project, even if you’re not involved in real estate sales.

…

What’s interesting about all this?

FOMO and the auction sales method can be effective in various projects and business types. Here are a few examples:

1. E-commerce: In online stores, time-limited sales or offers can create a sense of urgency and fear of missing out on a profitable deal.
   .
2. Cryptocurrencies and tokens: Many projects conduct ICOs (Initial Coin Offerings) or IEOs (Initial Exchange Offerings) using the auction sales method for tokens. This creates demand and encourages investors to make quick purchases.
   .
3. Tourism and leisure: Travel companies can hold auctions for vacation packages, hotels, or excursions, creating competition and motivating customers to make a purchase.
   .
4. Gaming industry: Video game developers can auction exclusive items, characters, or access to closed beta tests to attract players and create a sense of uniqueness.
   .
5. Collectibles: In collecting niches such as coins, stamps, paintings, and other art items, auctions are a common way of selling, where FOMO can be used to encourage participation and increase prices.
   .
6. Internet marketing: In internet marketing, FOMO can be utilized by offering time-limited promotions or special deals to engage customers and encourage them to make a purchase.

Overall, FOMO and the auction sales method are timeless ways to stimulate sales that are worth considering if you haven’t already.

Where to run?

• If you want to sell an apartment or are a real estate agent, the current case falls into the category of “Take and do.”
  .
• Delving deeper, following the current method, you can create an industry startup for real estate sales that may revolutionise the traditional approach to finding clients for a property on sale.
  // By the way, with this, we can help you in Startupus
  .
• If your business is not related to real estate, you can think about where exactly you can apply FOMO and (or) the gaming mechanics of an auction. I’m confident that this method is applicable in all industries and am ready to provide advice in the comments.
  .
• If you haven’t delved deeply into the topic of gamification and concise manipulation of user consciousness, I recommend starting with the book “Octalysis” by my acquaintance, author Yu-Kai Chou, known in Russia as “Gamify This.”

Is the article helpful?

Like, subscribe, comment. Thank you for your time!

By Dmitriy Lukyan.
Author of neural network patents. Product manager, system architect, automator, and gamifier of processes. Over 20 years in the field… Father of three children.
Published with the permission of the author.
The original article is here.

By Yaroslav Radinsky
CEO at RASA.pro tg – @radinskiy
The text is published with the permission of the author.
Link to original text is here.

I’ll tell you why we hired such an employee and what came out of it. About the battle with headhunters, resourceful pimps, and unconventional team-building.

..

In the photo: Kristina Kukhtina. Photographer – Evgeny Pyankov.

My name is Yaroslav, and I am the CEO of the digital agency RASA based in Khabarovsk/Russia. We specialize in creating websites, applications, configuring CRM, and advertising promotion in the Russian Far East.

How we looked for a Go-go dancer or stunt marketing in IT industry

Recently, on a hiring platform, we posted a job opening for a GO-GO dancer for our agency.

The idea behind hiring an employee for this position was to bring fresh perspectives and approaches to our work, regularly boosting the team’s motivation. The concept is undoubtedly innovative, but we are also a company with a young and dynamic team.

…

Everyone would have benefited from this idea:

For our designers and UX researchers, it would be an unconventional source of inspiration for new solutions. For developers, a wonderful assistant in tackling complex code and a means of relaxation after a challenging workday. One of the requirements for the job was an understanding of code terminology and the ability to visually interpret it.

And for the team as a whole, this person would be a friendly partner, the office mascot, and someone who makes you want to stay at your workplace longer and even invite friends to work – a dream scenario from any manager’s perspective. Moreover, the art of dance itself is an underestimated tool for work, especially in the form of contemporary dance.

…

“I imagined working in IT differently.”

One of the main values of our team is caring for each other. Both programmers and all employees, in general, can get tired or even experience burnout, which inevitably affects work processes and potentially the team spirit. Therefore, relaxation and recreation are no less of a priority for us than the work itself.

Previously, RASA had unconventional specialists visit the office, such as a breathing techniques coach. As a team, we gathered in our relaxation room in the morning, turned off the lights, and practiced proper breathing in complete darkness to set the soul and body for a productive and energetic day, charged with positive energy. We also had a yoga instructor come to help unlock the team’s full potential through practices and, quite simply, strengthen team building.

…

From time to time, as a team, we play poker, board games, and have a regular tradition of movie nights (usually on Friday evenings, but sometimes on Thursday or Wednesday). The team even votes on the movie they’ll watch. We have a ping pong table in the office where you can hit some balls during lunch, although this is hardly surprising to anyone. Also, every Friday at 5:30 PM, we have a meetup where the team shares experiences on productivity, work, and ways to improve their lives inside and outside the office.

In our understanding, it is crucial to see employees not just as workers but as a real team, where human needs are valued alongside their experience and skills. This requires time, organization, and money, but it makes us who we are.

And in our view, having a resident GO-GO dancer is one way to support the established corporate culture. At the beginning of the year, I provided details about what our team does outside of work and why the agency means much more to the team than just a workplace.

…

What keeps young talents in the Far East?
The edge of the world, low salaries, and what is there to find at all—this is roughly what people from the central part of Russia think when it comes to us. Using the example of employees in a digital agency, let’s explore why skilled professionals choose to stay here and not move to larger cities.

But let’s get back to the job opening: after its publication, some time passed, and for some reason, local media and public groups started writing about it. Then, my colleagues and acquaintances noticed it. I received messages in private and via email with content along the following lines.

This is genius!

Is everything okay there?

Should I break into IT?

To be honest, I was a bit surprised by such a resonance: a regular job opening meant to address production tasks suddenly became news and quickly left Khabarovsk, making its way into larger media outlets.

Publications in local media and not only about our vacancy.

I was even invited to the radio, and Moscow-based news portals reached out for interviews to have me share more details. Well, it’s time to share them with you too.

PR campaign

Or, damn it, fake news.
I suppose you’ve already grasped that our job opening is an atypical PR campaign, which, to my delight, worked out as planned.

The idea struck me on December 14th. It didn’t happen spontaneously; I was exploring ways to advertise our agency. It’s always a significant budget and a major hassle for companies like ours. After all, we operate in the performance marketing sphere, where everything is measured in quantitative terms: we attracted so many leads, brought in so many clients, reduced the number of abandoned carts, sold 250 million worth in a month, and so on. And all agencies say the same thing: that they deliver many results for little money.

…

At this point, a thought occurred to me: advertising is like buying love. Today you pay, and everyone wants you, but tomorrow the budget is gone, and you find yourself somewhere behind the scenes.

Then I remembered that besides advertising, there’s PR.
But I’m not familiar with it, and it’s not my strong suit. I’ve never been a journalist, a professional creator, or someone who knows how to create news hooks (or maybe I’m too self-critical). I always thought that the ideas that came to me were too straightforward, not very useful, and not worth trying to unfold. But that evening, I wanted to test a hypothesis that seemed quite unconventional.

News also appeared in Telegram groups.

Of course, I’m talking about the vacancy with the dancer.
I was dealing with the routine: browsing through job listings on HeadHunter and working on recruitment – currently, we’re in search of an HR manager, so I’m handling personnel matters for now. While reviewing profiles of analysts, programmers, and HR professionals, I suddenly felt the urge to see someone extraordinary, a specialist that no other company has.

And why not a dancer?

I immediately envisioned the reaction of those around to such a prank. Here’s an IT company, and they’re looking for a GO-GO specialist, and it’s definitely not about the Go programming language. Any regional media outlet would pay attention to this – and where there’s resonance in regional media, the news quickly spreads further, across the entire internet.

Many might believe that IT professionals have become so spoiled that they don’t know how to indulge themselves anymore (which, in reality, doesn’t resemble the truth anymore, but who needs this dull reality?). Plus, when there’s a component of sex and cheekiness in PR, it only amplifies its effect. The idea seemed good to me, with a budget of only 1400 rubles (the cost of posting the vacancy), and I decided to take the risk.

…

But first, I sought advice from someone who deals with similar creative things – it was interesting to hear an opinion from an outsider’s perspective.

Testing is necessary. But, unfortunately, I didn’t come up with this.

On the other end of the line.

I took a deep breath, posted the job opening, and then sent it to a couple of acquaintances for them to check it out.

A few hours later, I saw a post about the vacancy in a regional community on social media. After that, information started coming in that the link to it was circulating in chats among employees of IT companies, various banks, 2GIS offices, and so on. My inbox quickly filled with messages from many of my colleagues and acquaintances.

…

Some expressed respect for excellent PR, while others didn't quite catch on and wrote that it was a very bold job opening.

In connection with this, quite a few people wanted to join the commission for selecting the new employee.

Responses to the vacancy on HeadHunter spiked sharply. However, 80% were, of course, programmers who wrote that our company is solid, and they wished to join us in the office. Yet, among the responses, there were also very relevant ones, especially from the local community: one girl prepared a resume very well, and it was evident that it was crafted directly in line with the job requirements.

…

From the resume for the position of Go-Go dancer in the IT team: “I inspire people, charge them with joy, I play the crocodile well.”

Moreover, an enterprising individual named Artem (originally from Komsomolsk-on-Amur) contacted me, proposing to regularly supply girls for a percentage. He even sent their profiles with photos and videos – the guy was geared towards establishing serious business relations. I assume he still hasn’t quite grasped the essence of our initiative.

…

Of course, very few channels and media outlets explicitly mentioned the name of our agency. However, the address (Dzerzhinskogo 52) was visible in the vacancy screenshots, and the city was always specified, which contributed to the success of our PR campaign. The screenshots spread across a vast number of chats, channels, and communities, and people started googling to find out more about this company.

Without exaggeration, our website traffic increased approximately 50 times. We started receiving kind and warm letters of respect from literally everywhere, even from CIS countries. Some simply wrote “you guys are awesome,” while others said that we created the perfect festive atmosphere.

Cover letter: “I don’t know what your plan is, but you definitely created a festive atmosphere in the office.”

Cover letter: “Brilliant! We need to put this idea into circulation!”

Cover letter: “With dancing code and fun!”

It wasn’t without its challenges, either.

And problems did arise with the HeadHunter website – our vacancy started getting blocked. When a significant traffic influx hit the job opening (this happened on the 19th, a Tuesday), HH algorithms likely perceived it as a DDoS attack or some bot influx, so they took the vacancy down from publication. No money was deducted in the process.

The problem was not too complicated to solve – I simply clicked the “repost” button, and the vacancy returned to its place. However, on Thursday, the vacancy was blocked again, and the HH support team contacted me – they demanded the complete removal of the job opening from the site, referring to clauses in the agreement stating the inadmissibility of content that could harm the site’s reputation.

…

In other words, you can search for real striptease dancers from strip clubs on HH, but not for an IT company.

I disagreed with HH’s position: we didn’t violate any platform rules, and such a vacancy only benefited everyone in terms of traffic. So, I suggested having a call to settle this misunderstanding. Within half an hour, I received a call from technical support. Not from the PR department, not from the marketing department, but specifically from technical support, where people work strictly according to scripts. I’m not here to speak negatively about the support service, but our dialogue kept hitting the same script: they claimed that the publication could harm the project’s reputation, and I asked to connect me with the PR or marketing departments for further discussion.

When the conversation reached a complete deadlock, they told me that two complaints had been filed against our job opening.

I asked for clarification: two hundred or two thousand?
They replied: just two.

…

So, at that moment, out of approximately 50,000 people who viewed the job opening, two individuals clicked the “report” button, which became one of the main reasons for the blockage. We tried to resolve this issue, but in the pre-New Year rush, with a million other things to handle, it was too cumbersome.

However, in all other aspects, our prank was a success.
The team in the office received a boost of positivity right up to the holidays, and we gained a better understanding of the power of PR.

In the end

We spent 1400 rubles for the publication on HeadHunter, and that was the entire budget.

About 20 million users saw the news about the vacancy (based on rough and superficial calculations of public reach. Unfortunately, we couldn’t count the statistics for corporate chats).

Responses to our other vacancies significantly increased – more than 200 came in. After the New Year, some of these individuals will start working with us once we find an HR manager.

Khabarovsk is once again making waves in creativity and PR – and it’s delightful. Most importantly, many truly believed in the reality of what was happening: both IT professionals, the audience, and even journalists.

…

So, when people say that there is no life, creativity, or creative individuals on the Far East, it sounds at least strange to me. We saw, through a simple example, how interesting the PR tool can be, and I think we’ll implement something new in the near future (I’m not selling PR courses yet, but if anyone is interested, write to me on Telegram

P.S. While writing this article, my colleagues managed to convince me of something, and after the New Year, we will indeed invite a Go-Go dancer to the office. But I’ll write about that next year (and possibly even add a video).

Greetings from frosty Khabarovsk,
Yaroslav Radinskiy, RASA.

…

Happy New Year everyone!

By Yaroslav Radinsky
CEO at RASA.pro tg – @radinskiy
The text is published with the permission of the author.
Link to original text is here.

By Vladislav Vorkel
Product designer at Yandex.
Founder of the service for finding internships: https://t.me/Intern_Sheep.
Author’s blog: https://t.me/designvorkel

My internship search product currently has over 300 paying users, and it generates a monthly income equivalent to the salary of an average IT professional. I dreamed of creating a product that people would use, even if just a couple of them.

Hello, I’m Vlad Workel, a product designer at Yandex and the creator of InternSheep, a community with internships for designers. I’ll share how I really wanted my product and how I made it happen.

…

Roughly, this is how my dog helped in creating the product.

Internship search: where did the dream originated

I am a product designer and have worked in product roles, but I have always been interested in looking beyond the design field. I wanted to experience a product from all perspectives, from the idea, development, and demand to working with my team. Moreover, having my own product means it’s solely my responsibility, my decisions, and only my success or failure.

In simpler terms, it’s like crafting a wooden bow for a child that actually shoots, and then proudly running to show it to the adults.

The first attempt

About 1.5 years ago, I decided to embark on my first project – Gradeup. It’s a test for designers that, upon completion, allows you to assess your skill level and receive a competency map. It is still operational, and you can find it here: gradeup.vercel.app.

I found a developer acquaintance who was just learning front-end, designed the interface, and created a test consisting of competency cards from various companies. Initially, we tested the demand for the MVP test using Google Forms, where the result was a PDF that I personally drew and sent to each test-taker. I initially found the first users through my channel, which had about 500 people at that time.

There were many different hypotheses on how to monetize this test, but we never got around to it. Perhaps it was because there was a lack of understanding of how to do it, or maybe it was because I had already burned out and lost faith. That’s when the idea of gathering internships for designers came to mind, as it is something everyone needs!

The second attempt

Yes, that’s the one: InternSheep. So, the main story will be about testing the hypothesis, how we implemented the service in a couple of days with a developer in a hackathon format, how we attracted the first users, how the internship bot turned into a community, and how we created an educational program.

How not to start

The first week, I spent on absolutely unnecessary research, thinking I had to do it the “right” way. I scripted interviews, found respondents, and asked them about their job search experiences, problems faced, and so on.

The truth is, research is necessary when you don’t understand the target audience or when launching the product costs more than the research itself. In my case, I had a clear understanding of the target audience’s problems because I had personally gone through internships, and everyone around me was job hunting. It was literally part of my daily life. As a result, I abandoned the research and started building the product.

My opinion (it’s just mine, but I like it): in personal projects, it’s better to solve your own problem, then you won’t need extensive research. If your solution works for you, it will likely work for someone else – we are not unique.

…

The simplest hypothesis test:
There is a website where only internships are published. Internships of all cool companies immediately appear on the website after the company posts them on its official website. You will receive a notification. Are you ready to subscribe to the service for 200 rubles?

Yes: 52%
No, I don’t need internships: 18%
No, I’m sorry for the money: 17%
No, I’ll write in the comments why: 1%

From idea to the first revenue in just a few days

So let’s begin! The idea of implementation was to write parsers for career websites of top Russian product companies, we started with 15. Write a bot in which parsers will instantly send internships to users. They decided to sell the service by subscription – 200₽ per month

I assembled Landos in 1 day using nocode. I found several respondents for a decision interview and sold 3 subscriptions to a non-existent product. I just remember how I almost begged for real payment – only the money on the card could confirm the hypothesis in my case. It was a little awkward, but I overcame myself))

So, 600 rubles on the card, 0 developments, 3 people are waiting for the product within 2 weeks.

Let’s start development

I messaged Roman, a developer from Yandex, shared the idea with him, and we immediately started implementation. We needed parsers!

What parsers? Are you stupid or what?

Roman Dubinsky

Roman’s righteous laziness prevented us from making that mistake. Finding a student from Voronezh who browsed 15 websites several times a day turned out to be 100 times easier and cheaper. Later on, we did write parsers for some websites, but that’s not as important now.

…

Those very parsers…

In less than a week, we did the most essential thing: a bot and its admin panel where we uploaded internships.

The bot consisted of…

The bot consisted of:

1. Choice of Specialty: We had 5 options, but in practice, only designers subscribed.
   .
2. Subscription Payment: Done through the external Donate bot directly in Telegram.
   .
3. Each Internship had a link to the vacancy.

The entire flow seemed quite convoluted and makeshift initially, or at least, that’s what we thought at the beginning. In reality, it turned out that almost no one got confused, and people joined us smoothly.

So, the launch!

Actually, when I received the first prepayments, I started warming up the audience in my channel, talking about the service and collecting applications.

I asked all my acquaintances with channels to mention the service, and many responded absolutely for free. Thank you, if you’re reading this, it might not have worked out without you.

In the end, before the launch, we had over 300 applications.

As a result, we decided to sell it for 290 rubles to everyone who left a request, and then raise the price to 390 rubles.

We announced a broadcast where I presented the product and talked in more detail, but we started registering applications and opening access a few days before the launch.

…

The very broadcast where I tell you why you need to pay me 290₽.

At the time of the launch, we had sold about 200 subscriptions.

Couldn’t believe it when my card had not just 600₽ but 60,000₽. The amount may be modest, but it’s not about the money. I did something useful, and I’m getting paid for it! Wow!

Creating a community

Initially, we didn’t plan on doing anything like that. The idea was just to create a bot with internships – that’s it. But users suggested that it would be cool to have a chat where people in similar life situations could connect, receive support, and exchange experiences.

Both we and the participants saw significant value in this. Over time, it evolved into a community where we engage in various activities, communicate, and build friendships. People come to the product for internships but stay for the community. Many have found jobs or internships but continue to be a part of our community.

I was building a product and found friends.

What’s happening in the community now?

Continuous communication – and this is the most important aspect. People share test results, discuss who received invitations and who didn’t, seek advice, and find support when things get tough. Natasha, the community manager, and I have established a culture of zero toxicity and maximum friendliness. Throughout our time, we can count on one hand the instances of toxic conversations.

Lead designers conduct reviews several times a month where anyone can submit their portfolio or test work and receive a quality analysis.

We regularly host online meetups in our Safe Space, where you can come and simply talk when facing challenges at work or when despair sets in.

There’s also a book club and a poster art circle. Together, we read design-related books and discuss them, and in the art circle, we create posters with a designer from Yandex.Eats.

We are creating a small, warm, and friendly world where one feels inspired to grow and develop.

Periodically, members of our community would share internships that we didn’t initially have information about. We started keeping track of new companies, and as a result, the count increased from 16 to 26.

The product after 9 months

We haven’t closed down.
We are working!

Currently, the InternSheep channel has 2500 subscribers, with around 300 paying users in the product. Over 30 individuals have secured internships in top companies.

Throughout this period, I’ve hardly invested in advertising. There were trial sowings that yielded no results. Our growth is solely organic, which is great, but it’s time to learn how to attract more.

The team consists of three part-time individuals, including myself – a community manager/SMM, a designer, and me. Occasionally, we bring in others for one-time tasks or consultations.

What are our metrics?

As in any subscription-based service, the primary metric is retention.

We retrieve data from the Donate bot, which tracks all charges, subscriptions, and cancellations. We create charts that illustrate retention across monthly cohorts.

Currently, our average conversion to payment in the second month is 75%. I’m not sure how good of a metric that is, but it certainly seems quite favorable.

…

Retention from February to October.

I won’t talk about the number of paying users. It’s obviously important for us.

The second key metric is monthly revenue. From the start, we increased the cost twice – from 290 to 390, and then to 490. Subscription is not the only monetization model in the service – we sold partner products and channel advertising. Currently, we are developing our educational program and assisting companies in hiring talented interns, but I’ll write about that in the next article.

Let’s summarize

I dreamt of a product, and now I dream that it continues to live and grow. It’s a wonderful platform for experiments, for personal and professional growth. The most valuable thing I gained in the 11 months of working on the product is experience and passion.

Currently, the product brings in a monthly income comparable to that of an average IT specialist. A worthy reward.

Thank you for reading my story – perhaps it will inspire you to embark on your own pet project, or maybe it will just brighten your day a bit.

I would appreciate it if you subscribe to my Telegram channel (5000+) – I share stories about my projects, my work at Yandex, and the journey of self-discovery. I also throw in some humor occasionally.
The channel “InternSheep“: the product I talked about in this article.

By Vladislav Vorkel
Product designer at Yandex.
Founder of the service for finding internships: https://t.me/Intern_Sheep.
Author’s blog: https://t.me/designvorkel

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Our telegram channel https://t.me/theyseeku